This is to prevent money laundering and any types of terrorist financing taking place on cryptocurrency operations. But FCA has recently said that many of the cryptocurrency companies in Britain are struggling to comply with the government’s imposed standards.
FCA also added that only five firms have registered and completed the requirements for operating cryptocurrency transactions. These are Ziglu Limited, Gemini Europe Services Ltd, Digivault Limited, Archax Ltd, and Gemini Europe Ltd.
Last May 12, an additional 90 crypto companies have submitted temporary registrations, and this allows them to continue their transactions while FCA is reviewing their applications.
Britain’s financial watchdog said, “the FCA will only register firms where it is confident that processes are in place to identify and prevent [illegal] activity.”
Cryptocurrencies have skyrocketed, both in popularity and value, but their loose precautionary measures to prevent illegal activities, including money laundering, are alarming.
Without any standards to prevent these illegal activities, cryptocurrencies will be one of the main tools to conduct illegal activities and bypass the government’s radar.
Policymakers all over the world, especially in Britain, have already imposed standards to prevent these dangers. But authorities have admitted that big challenges are lying on the way to fully enforce these policies.
Financial Conduct Audit has announced that it will extend the temporary registrations for crypto firms until March 31, 2022.
The FCA also added that it had withdrawn the applications of 51 firms, which are now barred from initiating and conducting any crypto-related transactions.
According to the watchdog, these firms have failed to comply with the standards that are meant to prevent crypto platforms from being used in illegal activities.